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STATEMENT AND RESOLUTIONS 

ADVOCATING THE CREATION OF A BOARD 

OF WAR CONTROL AND A DIRECTOR 

OF MUNITIONS 



January 25. 1918 



TO ALL BUSINESS ORGANIZATIONS OF THE 
UNITED STATES 



Gentlemen : 

We urgently request that you give immediate and most 
earnest consideration to the appended preambles and resolutions, 
which advocate the application of indispensable business methods 
to the biggest business problem which ever confronted any nation ; 
namely, speedy and effective preparation for the war. 

If you agree with us that the big business of war cannot 
effectively be carried on except by adopting the method of cen- 
tralized control which prevails in every big business in the world, 
and by entrusting that control to men of business genius and 
proved experience in business management, we urge you to aid 
in bringing about such control. This is exclusively an economic 
and business proposition. 

The most effective way in which to aid is to make your views 
known to your Congressmen and Senators. We urge, therefore, 
that you adopt appropriate resolutions and transmit them at once 
to your representatives in Congress and seek active publicity co- 
operation on the part of your local newspapers. 

Very truly yours. 

The Merchants' Association of New York. 

By William Fellowes Morgan, 

President. 



D. Of D. 

MAR 1! 1918 






^ 



QJ cr 

S= i VOCATING CREATION OF A BOARD OF 



STATEMENT RELATING TO RESOLUTIONS AD- 



WAR CONTROL AND A DIRECTOR 
OF MUNITIONS 



NO big business with many branches and divisions can be 
properly carried on without a complete programme with 
all its parts clearly defined and so adjusted to each other 
as to prevent all conflict. No such programme, however excel- 
lent, will work itself. Each of the various parts may be en- 
trusted to able men; but if each of those men undertakes to 
operate his part without reference to what the others are doing, 
the result will be confusion in all the parts, none of the parts will 
work well, and the machine as a whole will function badly. 

It is indispensable, therefore, that all the parts be subjected 
to a common control in order that none may interfere with others, 
and that the programme as a whole may be perfectly correlated 
and proceed with the highest degree of speed and efficiency. 

Every great business corporation has numerous departments, 
each of which is in charge of an experienced and able man. 
While each of these men has ample authority within definite 
limits, his authority does not comprise important matters of policy, 
nor may it be so exercised as to conflict in operating details with 
other departments. Every department is, therefore, subordinate 
to a General Manager, who not only imposes policies but super- 
vises and co-ordinates the operations of all departments in such 
manner as to prevent conflict and obstruction, to promote the 
highest efficiency of each, and to insure that the machine as a 
whole shall function properly. 

No big business machine can function effectively without a 
General Manager to so direct, control, and co-ordinate the opera- 
tions of its department heads that they shall fully conform to and 
promote the comprehensive programme prepared and imposed 
by the higher authority having power to determine policies. 



At the present time a very large part of the energies of our 
Goveriiment are appHed to a vast business undertaking — the 
preparation for war. 

This work devolves upon the executive branch of the Gov- 
ernment, with the President at its head. It is divided among 
several departments (each having a number of co-ordinate bu- 
reaus) and a number of more or less independent commissions, 
boards and committees. Some of these divisions operate under 
powers delegated to them by the President ; others under specific 
laws, but all of them operate without a common programme, and 
in the main independently of each other. Although all are legally 
subordinate to the President, nevertheless they are for all prac- 
tical business purposes not now under any effective co-ordinating 
control. 

There is imperative need for a controlling head, directly 
under the President, to decide upon policies subject to the Presi- 
dent's approval ; to prepare a general programme ; to define the 
part to be taken in such programme by every subordinate depart- 
ment, board or division ; to supervise, control and co-ordinate all 
their operations, and in general to perform the functions of a 
General Manager in a great business corporation. The Presi- 
dent has an infinity of matters of the most fundamental impor- 
tance constantly pressing upon him, and the demands upon him 
are so great as to make it a physical impossibility for him to 
acquire the knowledge of detail and to exercise the supervision 
without which the affairs of the departments cannot be properly 
controlled and co-ordinated. It is not proposed to deprive him 
in the slightest degree of any of his Constitutional powers, but 
simply to place at his command an agency which can devote itself 
exclusively to a mastery of such details and to the supervisory 
work necessary for efTective operation ; thereby enabling the 
President not only fully to be informed of the operations of every 
branch of the Government, but also to so direct and control them 
through a Board of General Managers as to insure the complete 
carrying out of his policies. 

The need of a co-ordinating power cannot be disputed by 
any one competent to judge thereof. The War Department, the 
Navy Department, the Shipping Board, the Emergency Fleet 



Corporation, and otlicr Government agencies are now competing 
with each other in the matter of munitions and suppHes in such 
manner that none of them can command all the facilities neces- 
sary to carry out parts of essential programmes upon which the 
conduct of the war is dependent. Under the present lack of 
policy, factories which might have been employed upon essen- 
tials have been employed upon the production of munitions and 
supplies which cannot possibly be used for a year to come ; 
whereas their activities have been urgently needed in the produc- 
tion of other materials required at once. 

The function of properly providing for the fuel supply of 
the Nation cannot be carried on except by close co-ordination 
with transportation facilities. No such co-ordination has been 
effected or could be effected under the existing lack of common 
direction. Huge efforts have been made to expedite the building 
of ships without adequate provision for transportation facilities 
and for the provision of fuel, whereby much of the material with- 
out which shipbuilding cannot proceed has not been manufactured 
and even when manufactured cannot be transported. 

The work of shipbuilding cannot go on to the necessary ex- 
tent without ample labor supply, wdiich has been precluded by 
failure to provide the necessary housing accommodations for 
w^orkmen. 

These instances could be multiplied practically without limit. 
Chaotic conditions prevail in every branch of the Government 
despite the fact that many able and experienced men are in charge 
of these various affairs, but their efforts have been limited by 
reason of the lack of a common programme and co-ordinating 
control. 

There will be no dispute in any quarter that these conditions 
should be abolished and more workable conditions substituted. 
Commendable progress has already been made toward that end 
in the War Department, and has been begun in the Fuel Admin- 
istration, but better organization within the limits of any or all 
departments does not meet the existing exigency. Departmental 
reforms are highly desirable and must be enforced, but however 
good a departmental organization, it cannot be fully effective 
unless the operations of each department be correlated with 



those of other departments so that there shall be no cross-pur- 
poses, no confusion, and no independent programmes. 

Because of these conditions, The Merchants' Association of 
New York urges upon Congress the necessity for a Board of 
War Control, subordinate only to the President of the United 
States, and a Director of Munitions who, subject to the Board 
of War Control, shall have sole control for providing of munitions 
and supplies required for the purposes of the war. 



THE Board of Directors of The Merchants' Association of 
New York, at a special meeting held January 25, 1918, 
adopted the following preambles and resolutions, and 
directed that a copy be sent to each member of Congress. 

S. C. Mead, 

Secretary. 
Jan. 25, 1918. 



PREAMBLES AND RESOLUTIONS 

Whereas, The efificient conduct of the war in which this Nation 
is now involved is a paramount purpose of the American 
people, rising above all other considerations, political, sec- 
tional, or personal ; and 

Whereas, Such efficient conduct is possible only through such or- 
ganization as will centralize control, prepare programmes, 
clearly define all duties, avoid all conflicts of jurisdiction as 
between departments and bureaus, such as the War Depart- 
ment, Navy Department, Marine Corps, Shipping Board, 
Fuel Administration and others ; and ensure complete co- 
ordination ; and 



Whereas, The conduct of the war is apparently characterized by 
lack of co-ordination ; by independent planning by unrelated 
and unco-ordinated authorities acting without agreement ; by 
absence of power for quick decision and action in vital mat- 
ters, which conditions tend to confusion, delay, waste and 
low eflficiency ; therefore be it 

Resolved, That, in order to meet the imperative demand of the 
American people and of the Government for the speediest 
possible preparation for and the most vigorous conduct of 
the war, for which Congress has conferred unparalleled 
power upon the President and has provided means almost 
without Hmit, the machinery of administration should be 
strengthened by the creation of 

1 . A Board of War Control, to be appointed by the Pres- 

ident and approved by the Senate and subordinate 
only to the President. It should consist of men of pre- 
eminent ability unburdened by departmental routine 
and should have authority, in respect of all matters 
relating to planning and preparation for, and direction 
of the war, over all other departments and officials of 
the Government ; such Board to supervise, direct, con- 
trol and especially to co-ordinate the war preparations 
of every other department and branch, and to that end 
to be empowered to reorganize in its discretion any 
existing departmental organizations or methods. 

2. A Director of Munitions who, subject to the Board of 

War Control, shall have sole control of providing all 
munitions and supplies required for the purposes of 
the war ; and be it further 

Resolved, That the Congress is earnestly requested immediately 
to pass the necessary legislation fully to carry out the pur- 
poses of the preceding resolution and to repeal any existing 
legislation conflicting therewith. 



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LIBRARY OF CONGRESS 

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